Nature and Scope of Business Economics

The term Economics is derived from a

• Latin Word

• Greek Word

• Russian Word

• Indian Word

Micro economics deals primarily with

• Comparative statics, general equilibrium and positive economics

• Comparative statics, partial equilibrium and normative economics

• Dynamics, partial equilibrium and positive economics

• Comparative statics, partial equilibrium and positive economics

Micro economic approach is

• Total

• Individualistic

• Aggregative

• None of the above

Micro economics approaches the study of economics from the view point of

• Individual or specific markets

• World Markets

• Economy wide effects

• The national economy

Which of the following is concerned with micro economics

• The size of national output

• The level of employment

• Change in the general level of prices

• None of the above

Since micro economics splits up the entire economy into smaller parts for the purpose of intensive study, it is also known as

• Slicing method

• Bulldozer method

• Micro - macro method

• Micro foundation of macro method

The expansion of micro economics into other social sciences has caused economics to be called as the

• Imperialist social science

• Queen of social science

• Traditional social science

• Inter disciplinary social science

Which one of the following is not true?

• Micro economics is the study of the allocation of scarce resources

• Economists use models to make testable predictions

• Individuals, governments, and firms use micro economic models and predictions in decision making

• Micro economics is often called income theory to emphasize the important role that prices play

Micro analysis deals with the

• Allocation of resources of the economy as between production of different goods and services

• Determination of prices of goods and services

• Behavior of individual decision makers

• All of the above

Micro economics theory studies how a free enterprise economy determines:

• The price of goods

• The price of services

• The price of economy resources

• All of the above